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PTT Services

A primary corporate objective, to which Telhouse is devoting substantial resources, is the implementation of fully developed telecommunications agreements with international foreign PTTs. This allows the exchange of telecommunications traffic between the U.S. and the PTT as well as those countries with which the PTT has bilateral agreements. Such agreements enable the foreign PTT to significantly add to its revenues without capital or operational expenditures as Telhouse would be financially responsible for the expenses necessitated by equipment upgrades and the hiring and training of local engineers.

An example of a form the proposed Telhouse/PTT arrangement may take is a termination agreement. Calls originating in the U.S. would pass from a local site to a termination point or gateway switch in the foreign country. After transit, the international call moves to a switch at the overseas PTT destination site, and is then routed to the desired internal termination point. Under the terms of the termination agreement, Telhouse compensates the foreign PTT for terminating calls on a per minute basis—reconciling the account on a periodic basis. Another form which a Telhouse/PTT arrangement may take is a bilateral agreement, whereby the two parties both send and receive telecommunications traffic at an agreed upon volume. However, since more traffic will move from the U.S. to the foreign PTT, Telhouse would pay a periodic settlement fee to the PTT for handling surplus minutes of international traffic. A Telhouse/PTT agreement may also take the form of a transit arrangement under whose terms Telhouse may terminate telephone traffic into nearby regional countries through the foreign PTT with whom the PTT has a bilateral agreement. In general, countries in one region have bilateral agreements with other nearby countries whereby they receive and terminate traffic at aggressive rates. Telhouse can also terminate traffic, at a very low cost, to countries where a PTT does not have a direct agreement by implementing a refiling arrangement. Such an arrangement enables traffic originating in one country to be re-filed through Telhouse to another country at an aggressive cost.

A Telhouse/PTT agreement can also benefit a foreign partner in the management of surplus and negative traffic. In cases where a country sends more traffic minutes to another country than it receives, it must pay a periodic settlement fee. With Telhouse’s involvement, however, surplus traffic and resulting settlement costs can be minimized or even eliminated for its PTT partner by implementing these strategies:

  • By terminating its traffic with the help of Telhouse, a foreign PTT can greatly reduce the minutes it typically sends to other countries, with simultaneous reductions in dispersed settlement fees.
  • Telhouse can also terminate a foreign PTT’s traffic at lower cost than the foreign PTT pays to other carriers.
  • Creative application of certain aspects of a transit foreign arrangement can readily generate new profits for its PTT partner.
  • A foreign PTT can also receive settlement fees from any given country for the extra minutes sent, thereby extracting added income from the system.
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